Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fizer Pharmaceutical paid $68 million on January 2. 2021, for 4 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Fizer Pharmaceutical paid \$68 million on January 2. 2021, for 4 million shares of Carne Cosmetics common stock. The investment represents a 25\% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations. Fizer received dividends of $1 per share on December 21. 2021. and Carne reported net income of $40 million for the year ended December 31,2021 . The fair value of Carnes common stock at December 31, 2021, was $18.50 per share. - The book value of Carne's net assets was $192 million. - The fair value of Carne's depreciable assets exceeded their book value by $32 million. These assets had an average remaining useful life of eight years. - The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: Complete the table below and prepare the appropriate journal entries related to the investment during 2021. Complete this question by entering your answers in the tabs below. Journal entry worksheet 5 Record the investment in Carne Cosmetics shares. Note: Enter debith before credit: Journal entry worksheet Record the investor's share of net income. Note: Enter debits before credits. Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Analysis And Earnings Forecasting In Accounting

Authors: Steven J Monahan

1st Edition

1680834509, 978-1680834505

More Books

Students also viewed these Accounting questions